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AB-625 Forest biomass: management: emissions: energy.(2023-2024)

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Date Published: 04/12/2023 09:00 PM
AB625:v97#DOCUMENT

Amended  IN  Assembly  April 12, 2023
Amended  IN  Assembly  March 27, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 625

Introduced by Assembly Member Aguiar-Curry
(Coauthor: Senator Newman)

February 09, 2023

An act to amend Sections Section 38535 and 38561 of the Health and Safety Code, to add Section 25302.3 to, to add Article 3.5 (commencing with Section 4139) to Chapter 1 of Part 2 of Division 4 of, and to repeal Section 4140.3 of, the Public Resources Code, and to amend Section 399.20 of the Public Utilities Code, relating to public resources.


LEGISLATIVE COUNSEL'S DIGEST


AB 625, as amended, Aguiar-Curry. Forest biomass: management: emissions: energy.
(1) Existing law establishes in the Natural Resources Agency the Department of Forestry and Fire Protection (CAL-FIRE), and requires CAL-FIRE to be responsible for, among other things, fire protection and prevention, as provided. Existing law establishes the State Board of Forestry and Fire Protection in CAL-FIRE to represent the state’s interest in the acquisition and management of state forests and requires the board to maintain an adequate forest policy. The former Governor, Edmund G. Brown Jr., issued Executive Order No. B-52-18 that, among other things, established a Forest Management Task Force, now known as the Wildfire and Forest Resilience Task Force, involving specified state agencies to create the action plan for wildfire and forest resilience. The executive order also established a Joint Institute for Wood Products Innovation, to be located within the state board.
This bill would establish the Forest Biomass Waste Utilization Program to be administered by the state board’s Joint Institute for Wood Products Innovation to develop an implementation plan to meet the goals and recommendations of, and the comprehensive framework to align with the state’s wood utilization policies and priorities and focused market strategy of, specified statewide forest management plans, and to develop a workforce training program to complement the workforce needs associated with the implementation plan. The bill would require the state board, in coordination with the Wildfire and Forest Resilience Task Force, to submit an annual report to the Legislature, beginning January 1, 2025, on the progress made on implementing the implementation plan.
This bill would require the Natural Resources Agency, in furtherance of the program, to facilitate the integration of recommendations for forest biomass waste utilization in relevant, state climate adaptation plans.
(2) The Warren-Alquist State Energy Resources Conservation and Development Act establishes the State Energy Resources Conservation and Development Commission (Energy Commission) and requires the Energy Commission to undertake various actions in furtherance of meeting the state’s clean energy and pollution reduction objectives. Existing law requires the Energy Commission, in consultation with specified state and federal agencies and at least every 2 years, to conduct assessments and forecasts of all aspects of energy industry supply, production, transportation, delivery and distribution, demand, and prices. Existing law requires the Energy Commission, in consultation with specified entities, to adopt a biennial integrated energy policy report containing certain information.
This bill would require the Energy Commission, in furtherance of the Forest Biomass Waste Utilization Program, to prepare and submit a report to the Legislature, on or before December 31, 2024, that evaluates innovative bioenergy technologies that use forest biomass waste, as specified. The bill would also require the Energy Commission to include, as part of the 2025 edition of the integrated policy report, an assessment of the potential for forest biomass waste energy to provide firm renewable power.
(3) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board (state air board) as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state air board to adopt a statewide greenhouse gas emissions limit, as specified, and to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emission reductions. The act requires the state air board to develop, on or before December 31, 2020, and every 5 years thereafter, a report that assesses greenhouse gas emission associated with wildfire and forest management activities. The act requires the state air board to prepare, approve, and update at least once every 5 years, beginning on January 1, 2009, a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases under the act.
This bill would require the state air board, in the report developed on or before December 31, 2025, and every 5 years thereafter, to include, among other things, a methodology to quantify the greenhouse gas and short-lived climate pollutant emissions from wildfire, pile burning, and forest management activities, as specified. The bill would also require the state air board to consider the results of that report, as applicable, in the next update of the scoping plan.
(4) Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations. The California Renewables Portfolio Standard Program requires every electrical corporation to file with the PUC a standard tariff for electricity generated by an electric generation facility, as defined, that qualifies for the tariff, is owned and operated by a retail customer of the electrical corporation, and is located within the service territory of, and developed to sell electricity to, the electrical corporation. The PUC refers to this requirement as the renewable feed-in tariff. The renewable feed-in tariff law, in part, requires the PUC to direct the electrical corporations, collectively, to procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013. Pursuant to this requirement, the PUC has established and revised the Bioenergy Market Adjusting Tariff (BioMAT) program. Existing law authorizes a community choice aggregator to submit eligible projects for cost recovery pursuant to the BioMAT program, as specified.
This bill would require the PUC to continue the BioMAT program until the implementation of the provisions authorizing community choice aggregators to participate in the program has been resolved as specified, and adequate time is given to community choice aggregators to participate in the program.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because certain provisions of this bill would be a part of the act and because a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.
(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) Reducing wildfire severity and restoring healthy and resilient forests requires active forest management, including forest thinning and fuel removal in high fire hazard severity zones.
(b) Senate Bill 901 (Chapter 626 of the Statutes of 2018) calls upon California to significantly increase the amount of forest fuel removal for wildfire mitigation.
(c) The 2020 Forest Stewardship Agreement between California and the United States Forest Service commits to scaling up vegetation treatment of forests and wildlands to 1,000,000 acres per year by 2025.
(d) The “Joint Institute Recommendations to Expand Wood and Biomass Utilization in California,” issued by the State Board of Forestry and Fire Protection’s Joint Institute for Wood Products Innovation in November 2020, found that meeting fuel removal requirements would generate tens of millions of tons of dry forest waste annually, and provided recommendations for the beneficial use of forest biomass waste.
(e) Implementing the recommendations of the “Joint Institute Recommendations to Expand Wood and Biomass Utilization in California” will reduce the need for the piling and burning of forest waste, and would instead generate useful wood products, renewable energy, low carbon fuels, biochar, and other soil amendments, while reducing wildfire risk.
(f) “California’s Wildfire and Forest Resilience Action Plan,” issued by the Governor’s Forest Management Task Force in January 2021, requires the Office of Planning and Research, among other state agencies, to develop a comprehensive framework to align the state’s wood utilization policies and priorities, including a comprehensive set of metrics to evaluate biomass availability, usage, investments, and workforce levels to create a sustainable wood products market in the state. That plan also requires the Governor’s Office of Business and Economic Development to develop a focused market strategy.
(g) According to the “California Forest Carbon Plan: Managing our Forest Landscapes in a Changing Climate,” issued by the Forest Climate Action Team in 2018 and adopted by the California Environmental Protection Agency, Natural Resources Agency, and Department of Forestry and Fire Protection, converting waste biomass to energy cuts emissions of particulate matter, methane, and carbon monoxide by 98 percent, and significantly reduces black carbon and other pollutants, in comparison to open-pile burning.
(h) According to “Getting to Neutral: Options for Negative Carbon Emissions in California,” a report prepared by the Lawrence Livermore National Laboratory and released in 2020, converting forest waste to hydrogen, electricity, and other renewable fuels can provide significant carbon negative emissions needed to reach carbon neutrality by 2045.
(i) Forest biomass waste utilization will create jobs and economic development in many of the poorest regions of the state, increase energy resilience in the communities that are most vulnerable to power disruptions, and help to create a circular economy in California’s forested communities.

SEC. 2.

 Section 38535 of the Health and Safety Code is amended to read:

38535.
 The state board, in consultation with the California Department of Forestry and Fire Protection, shall develop all of the following:
(a) A standardized system for quantifying the direct carbon emissions and decay from fuel reduction activities for purposes of meeting the accounting requirements for Greenhouse Gas Reduction Fund expenditures. This system may include standardized lookup tables by forest stand type, including for oak woodland forests, and harvest or other management prescriptions. The system shall acknowledge that certain expenditures, such as for planning, analysis, modeling, or outreach, will not have a direct greenhouse gas reduction benefit, but will facilitate necessary climate preparedness activities that will have direct greenhouse gas benefits.
(b) In consultation with academic experts, a historic baseline of greenhouse gas emissions from California’s natural fire regime reflecting conditions before modern fire suppression. This shall be completed on or before December 31, 2020. The baseline may be included within the state board’s natural working lands inventory.
(c) On or before December 31, 2025, and every five years thereafter, a report that assesses greenhouse gas emissions associated with wildfire and forest management activities. The report shall include both of the following:
(1) A methodology to quantify the greenhouse gas and short-lived climate pollutant emissions, including black carbon, from wildfire, pile burning, and forest management activities.
(2) A list of the data needed to use the methodology prepared pursuant to paragraph (1).

SEC. 3.Section 38561 of the Health and Safety Code is amended to read:
38561.

(a)On or before January 1, 2009, the state board shall prepare and approve a scoping plan, as that term is understood by the state board, for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions from sources or categories of sources of greenhouse gases by 2020 under this division. The state board shall consult with all state agencies with jurisdiction over sources of greenhouse gases, including the Public Utilities Commission and the State Energy Resources Conservation and Development Commission, on all elements of its plan that pertain to energy-related matters, including, but not limited to, electrical generation, load-based standards or requirements, the provision of reliable and affordable electrical service, petroleum refining, and statewide fuel supplies to ensure the greenhouse gas emissions reduction activities to be adopted and implemented by the state board are complementary, nonduplicative, and can be implemented in an efficient and cost-effective manner.

(b)The plan shall identify and make recommendations on direct emissions reduction measures, alternative compliance mechanisms, market-based compliance mechanisms, and potential monetary and nonmonetary incentives for sources and categories of sources that the state board finds are necessary or desirable to facilitate the achievement of the maximum feasible and cost-effective reductions of greenhouse gas emissions by 2020.

(c)In making the determinations required by subdivision (b), the state board shall consider all relevant information pertaining to greenhouse gas emissions reduction programs in other states, localities, and nations, including the northeastern states of the United States, Canada, and the European Union.

(d)The state board shall evaluate the total potential costs and total potential economic and noneconomic benefits of the plan for reducing greenhouse gases to California’s economy, environment, and public health, using the best available economic models, emission estimation techniques, and other scientific methods.

(e)In developing its plan, the state board shall take into account the relative contribution of each source or source category to statewide greenhouse gas emissions, and the potential for adverse effects on small businesses, and shall recommend a de minimis threshold of greenhouse gas emissions below which emissions reduction requirements will not apply.

(f)In developing its plan, the state board shall identify opportunities for emissions reduction measures from all verifiable and enforceable voluntary actions, including, but not limited to, carbon sequestration projects and best management practices.

(g)In developing its plan, the state board shall consider the results of the latest report issued pursuant to subdivision (c) of Section 38535, as applicable.

(h)The state board shall conduct a series of public workshops to give interested parties an opportunity to comment on the plan. The state board shall conduct a portion of these workshops in regions of the state that have the most significant exposure to air pollutants, including, but not limited to, areas designated as federal extreme nonattainment that have communities with minority populations, communities with low-income populations, or both.

(i)The state board shall update its plan for achieving the maximum technologically feasible and cost-effective reductions of greenhouse gas emissions at least once every five years.

SEC. 4.SEC. 3.

 Article 3.5 (commencing with Section 4139) is added to Chapter 1 of Part 2 of Division 4 of the Public Resources Code, to read:
Article  3.5. Forest Biomass Waste Utilization Program

4139.
 For purposes of this article, the following definitions apply:
(a) “California Forest Carbon Plan” means the “California Forest Carbon Plan: Managing our Forest Landscapes in a Changing Climate” issued by the California Environmental Protection Agency, the Natural Resources Agency, and the Department of Forestry and Fire Protection in May 2018.
(b) “Forest Biomass Waste Utilization Plan” means the “Joint Institute Recommendations to Expand Wood and Biomass Utilization in California” report issued by the board’s Joint Institute for Wood Products Innovation in November 2020.
(c) “Forest biomass waste” is forest biomass that is removed to reduce or mitigate the risk of wildfire, reduce the risks to public safety or infrastructure from falling trees or tree limbs, or create defensible space, or for forest restoration projects.
(d) “Program” means the Forest Biomass Waste Utilization Program established pursuant to Section 4140.
(e) “Wildfire and Forest Resilience Action Plan” means the “California Wildfire and Forest Resilience Action Plan” issued by the Governor’s Forest Management Task Force in January 2021.

4140.
 (a) The Forest Biomass Waste Utilization Program is hereby established in the board’s Joint Institute for Wood Products Innovation. The program shall do all of the following:
(1) Develop an implementation plan, in coordination with the Wildfire and Forest Resilience Task Force, Office of Planning and Research, Governor’s Office of Business and Economic Development, Department of Toxic Substances Control, Department of Conservation, State Energy Resources Conservation and Development Commission, and Public Utilities Commission, to meet the goals and recommendations of the Forest Biomass Waste Utilization Plan, and the comprehensive framework to align the state’s wood utilization policies and priorities and the focused market strategy required by the Wildfire and Forest Resilience Action Plan. The implementation plan shall do both of the following:
(A) Identify, with particular emphasis on the development of new forest biomass waste utilization projects on developed property that is located near forested land that sources forest biomass waste, funding needs, gaps in research and demonstration, necessary regulatory changes, and other needs.
(B) Adopt best practices for biomass feedstock aggregation that are consistent with the recommendations of the Office of Planning and Research.
(2) (A) In collaboration with governmental, nonprofit, and for-profit entities that have expertise in workforce development, including, but not limited to, the California Community College system and the California Workforce Development Board, develop a workforce training program that will complement the workforce needs associated with implementation of the biomass utilization program.
(B) The workforce training program developed pursuant to subparagraph (A) shall include recommendations that address barriers that impact the hiring of new workers, including, but not limited to, high insurance premiums associated with newly trained drivers.
(b) Beginning January 1, 2025, and on or before every January 1 thereafter, the board, in coordination with the Wildfire and Forest Resilience Task Force, shall prepare and submit an annual report to the Legislature on the progress made on implementing the implementation plan developed pursuant to paragraph (1) of subdivision (a).
(c)  A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.

4140.1.
 In furtherance of the program, the Natural Resources Agency shall facilitate the integration of recommendations for forest biomass waste utilization in relevant, state climate adaptation plans.

4140.2.
 In furtherance of the program, the State Energy Resources Conservation and Development Commission shall, in coordination with the department, Natural Resources Agency, and Department of Conservation, consider funding qualifying projects pursuant to the Clean Transportation Program (Article 2 (commencing with Section 44272) of Chapter 8.9 or Part 5 of Division 26 of the Health and Safety Code) that use forest biomass waste for advanced biofuel technology development, including, but not limited to, projects that use noncombustion conversion technologies for electrical vehicle charging or hydrogen vehicle fueling.

4140.3.
 (a) In furtherance of the program, the State Energy Resources Conservation and Development Commission shall, in coordination with the Natural Resources Agency and the Department of Conservation, prepare and submit a report to the Legislature, on or before December 31, 2024, that evaluates innovative bioenergy technologies that utilize forest biomass waste. The report shall present recommendations, where appropriate, for opportunities to maximize environmental performance, grid reliability benefits, and value to electricity ratepayers. The report shall assess the potential to facilitate the use of forest biomass waste produced within fire-threat areas, as identified by the Public Utilities Commission, to support the integration of innovative biomass power for the purpose of supporting rural microgrids, or providing other grid support, or both, including an assessment of any technological or feasible challenges, including, but not limited to, challenges associated with reliability and fueling concerns. The report may include a review of, and recommendations for, alternative programming or financing considerations.
(b) (1) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.

SEC. 5.SEC. 4.

 Section 25302.3 is added to the Public Resources Code, to read:

25302.3.
 (a) As part of the 2025 edition of the integrated energy policy report the commission shall include an assessment of the potential for forest biomass waste energy to provide firm renewable power.
(b) For the purposes of this section, “forest biomass waste” means the same as defined in Section 4139 of the Public Resources Code.

SEC. 6.SEC. 5.

 Section 399.20 of the Public Utilities Code is amended to read:

399.20.
 (a) (1) It is the policy of this state and the intent of the Legislature to encourage electrical generation from eligible renewable energy resources.
(2) Paragraph (5) of subdivision (f) is appropriate because the program is a fixed-price feed-in tariff program with no pricing discretion.
(3) This section does not authorize cost recovery by an entity other than an electrical corporation regulated by the commission, except for the procurement authorized in paragraph (5) of subdivision (f).
(b) As used in this section, “electric generation facility” means an electric generation facility located within the service territory of an electrical corporation, and developed to sell electricity to, an electrical corporation or, for a bioenergy electric generation facility, to an electrical corporation or a community choice aggregator that provides electric service within the service territory of the electrical corporation that meets all of the following criteria:
(1) Has an effective capacity of not more than three megawatts, with the exception of those facilities participating in a tariff made available pursuant to paragraph (2) of subdivision (f).
(2) Is interconnected and operates in parallel with the electrical transmission and distribution grid.
(3) (A) Except as provided in subparagraph (B), is strategically located and interconnected to the electrical transmission and distribution grid in a manner that optimizes the deliverability of electricity generated at the facility to load centers.
(B) For purposes of paragraph (2) of subdivision (f), is strategically located and interconnected to the electrical transmission and distribution grid in a manner that optimizes the deliverability of electricity generated at the facility to load centers or is interconnected to an existing transmission line.
(4) Is an eligible renewable energy resource.
(c) Every electrical corporation shall file with the commission a standard tariff for electricity purchased from an electric generation facility. The commission may modify or adjust the requirements of this section for any electrical corporation with less than 100,000 service connections, as individual circumstances merit.
(d) (1) The tariff shall provide for payment for every kilowatthour of electricity purchased from an electric generation facility for a period of 10, 15, or 20 years, as authorized by the commission. The payment shall be the market price determined by the commission pursuant to paragraph (2) and shall include all current and anticipated environmental compliance costs, including, but not limited to, mitigation of emissions of greenhouse gases and air pollution offsets associated with the operation of new generating facilities in the local air pollution control or air quality management district where the electric generation facility is located.
(2) The commission shall establish a methodology to determine the market price of electricity for terms corresponding to the length of contracts with an electric generation facility, in consideration of the following:
(A) The long-term market price of electricity for fixed price contracts, determined pursuant to an electrical corporation’s general procurement activities as authorized by the commission.
(B) The long-term ownership, operating, and fixed-price fuel costs associated with fixed-price electricity from new generating facilities.
(C) The value of different electricity products including baseload, peaking, and as-available electricity.
(3) The commission may adjust the payment rate to reflect the value of every kilowatthour of electricity generated on a time-of-delivery basis.
(4) The commission shall ensure, with respect to rates and charges, that ratepayers that do not receive service pursuant to the tariff are indifferent to whether a ratepayer with an electric generation facility receives service pursuant to the tariff.
(e) An electrical corporation shall provide expedited interconnection procedures to an electric generation facility located on a distribution circuit that generates electricity at a time and in a manner so as to offset the peak demand on the distribution circuit, if the electrical corporation determines that the electric generation facility will not adversely affect the distribution grid. The commission shall consider and may establish a value for an electric generation facility located on a distribution circuit that generates electricity at a time and in a manner so as to offset the peak demand on the distribution circuit.
(f) (1) An electrical corporation shall make the tariff available to the owner or operator of an electric generation facility within the service territory of the electrical corporation, upon request, on a first-come-first-served basis, until the electrical corporation meets its proportionate share of a statewide cap of 750 megawatts cumulative rated generation capacity served under this section and Section 399.32. The proportionate share shall be calculated based on the ratio of the electrical corporation’s peak demand compared to the total statewide peak demand.
(2) By June 1, 2013, the commission shall, in addition to the 750 megawatts identified in paragraph (1), direct the electrical corporations to collectively procure at least 250 megawatts of cumulative rated generating capacity from developers of bioenergy projects that commence operation on or after June 1, 2013. The commission shall, for each electrical corporation, allocate shares of the additional 250 megawatts based on the ratio of each electrical corporation’s peak demand compared to the total statewide peak demand. In implementing this paragraph, the commission shall do all of the following:
(A) Allocate the 250 megawatts identified in this paragraph among the electrical corporations based on the following categories:
(i) For biogas from wastewater treatment, municipal organic waste diversion, food processing, and codigestion, 110 megawatts.
(ii) For dairy and other agricultural bioenergy, 90 megawatts.
(iii) For bioenergy using byproducts of sustainable forest management, 50 megawatts. Allocations under this category shall be determined based on the proportion of bioenergy that sustainable forest management providers derive from sustainable forest management in fire threat treatment areas, as designated by the Department of Forestry and Fire Protection.
(B) Direct the electrical corporations to develop standard contract terms and conditions that reflect the operational characteristics of the projects, and to provide a streamlined contracting process.
(C) Coordinate, to the maximum extent feasible, any incentive or subsidy programs for bioenergy with the agencies listed in subparagraph (A) of paragraph (3) in order to provide maximum benefits to ratepayers and to ensure that incentives are used to reduce contract prices.
(D) The commission shall encourage gas and electrical corporations to develop and offer programs and services to facilitate development of in-state biogas for a broad range of purposes.
(E) Direct the electrical corporations to authorize a bioenergy electric generation facility with an effective capacity of up to five megawatts to participate in the tariff made available pursuant to this paragraph, if it meets the following conditions:
(i) It delivers no more than three megawatts to the grid at any time.
(ii) It complies with the electrical corporation’s Electric Rule 21 tariff or other distribution access tariff.
(F) Payment is made pursuant to paragraph (1) of subdivision (d) and no payment is made for any electricity delivered to the grid in excess of three megawatts at any time.
(3) (A) The commission, in consultation with the Energy Commission, the State Air Resources Board, the Department of Forestry and Fire Protection, the Department of Food and Agriculture, and the Department of Resources Recycling and Recovery, may review the allocations of the 250 additional megawatts identified in paragraph (2) to determine if those allocations are appropriate.
(B) If the commission finds that the allocations of the 250 additional megawatts identified in paragraph (2) are not appropriate, the commission may reallocate the 250 megawatts among the categories established in subparagraph (A) of paragraph (2).
(4) (A) A project identified in clause (iii) of subparagraph (A) of paragraph (2) is eligible, in regards to interconnection, for the tariff established to implement paragraph (2) or to participate in any program or auction established to implement paragraph (2), if it meets at least one of the following requirements:
(i) The project is already interconnected.
(ii) The project has been found to be eligible for interconnection pursuant to the fast track process under the relevant tariff.
(iii) A system impact study or other interconnection study has been completed for the project under the relevant tariff, and there was no determination in the study that, with the identified interconnection upgrades, if any, a condition specified in paragraph (2), (3), or (4) of subdivision (n) would exist. Such a project is not required to have a pending, active interconnection application to be eligible.
(B) For a project meeting the eligibility requirements pursuant to clause (iii) of subparagraph (A) of this paragraph, both of the following apply:
(i) The project is hereby deemed to be able to interconnect within the required time limits for the purpose of determining eligibility for the tariff.
(ii) The project shall submit a new application for interconnection within 30 days of execution of a standard contract pursuant to the tariff if it does not have a pending, active interconnection application or a completed interconnection. For those projects, the time to achieve commercial operation shall begin to run from the date when the new system impact study or other interconnection study is completed rather than from the date of execution of the standard contract.
(5) (A) A community choice aggregator may submit eligible bioenergy projects to the commission for cost recovery if open capacity exists within an allocation category described in subparagraph (A) of paragraph (2) and the community choice aggregator submits an eligible tariff to the commission consistent with both of the following:
(i) The community choice aggregator files with the commission a standard tariff for electricity purchased from a bioenergy electric generation facility.
(ii) (I) The tariff provides for payment for every kilowatthour of electricity purchased from a bioenergy electric generation facility for a period of 10, 15, or 20 years, as authorized by the commission. The payment shall be the market price determined by the commission pursuant to subclause (II) and shall include all current and anticipated environmental compliance costs, including, but not limited to, mitigation of emissions of greenhouse gases and air pollution offsets associated with the operation of new generating facilities in the local air pollution control or air quality management district where the bioenergy electric generation facility is located.
(II) The commission shall establish a methodology to determine the market price of electricity for terms corresponding to the length of contracts with a bioenergy electric generation facility, considering those matters described in paragraph (2) of subdivision (d).
(iii) Any capacity procured by the community choice aggregator from a bioenergy project that is approved by the commission pursuant to this paragraph shall reduce the procurement targets for that allocation category ordered by the commission for the electrical corporation whose service territory encompasses the community choice aggregator pursuant to paragraph (2), or as modified pursuant to paragraph (3).
(B) Before acting pursuant to the authorization in subparagraph (A), a community choice aggregator shall develop standard contract terms and conditions that reflect the operational characteristics of the bioenergy electric generation facility and provide a streamlined contracting process. A community choice aggregator shall use the standard contract approved by the commission for use by the electrical corporation pursuant to subparagraph (B) of paragraph (2) to comply with this requirement, so long as all the terms and conditions of the contract are not modified by the community choice aggregator.
(C) In implementing this paragraph, the commission shall do all of the following:
(i) Coordinate, to the maximum extent feasible, any incentive or subsidy programs for bioenergy with the agencies listed in subparagraph (A) of paragraph (3) in order to provide maximum benefits to ratepayers and to ensure that incentives are used to reduce contract prices.
(ii) Direct a participating community choice aggregator to authorize a bioenergy electric generation facility with an effective capacity of up to five megawatts to participate in the tariff made available pursuant to this paragraph if it meets the following conditions:
(I) It delivers no more than three megawatts to the grid at any time.
(II) It complies with the Electric Rule 21 tariff or other distribution access tariff of the electrical corporation whose service territory it is located in.
(iii) Ensure payment is made pursuant to clause (ii) of subparagraph (A) and no payment is made for any electricity delivered to the grid in excess of three megawatts at any time.
(D) The community choice aggregator may make the terms of the tariff available to owners and operators of a bioenergy electric generation facility in the form of a standard contract subject to commission approval. To comply with this requirement, the community choice aggregator may base its tariff on the electrical corporation’s approved tariff, so long as all the terms and conditions of the tariff are not modified by the community choice aggregator.
(E) Every kilowatthour of electricity purchased from a bioenergy electric generation facility shall count toward meeting the community choice aggregator’s renewables portfolio standard annual procurement targets for purposes of paragraph (1) of subdivision (b) of Section 399.15.
(F) The physical generating capacity of a bioenergy electric generation facility shall count toward the community choice aggregator’s resource adequacy requirement for purposes of Section 380.
(G) In order to ensure the safety and reliability of bioenergy electric generation facilities, the owner of a bioenergy electric generation facility receiving a tariff pursuant to this paragraph shall provide an inspection and maintenance report to the community choice aggregator at least once every other year. The inspection and maintenance report shall be prepared at the owner’s or operator’s expense by a California-licensed contractor who is not the owner or operator of the bioenergy electric generation facility. A California-licensed electrician shall perform the inspection of the electrical portion of the generation facility.
(H) The contract between the bioenergy electric generation facility receiving the tariff and the community choice aggregator shall contain provisions that ensure that construction of the bioenergy electric generating facility complies with all applicable state and local laws and building standards and utility interconnection requirements.
(I) Nothing in this paragraph changes the sole procurement responsibility of a community choice aggregator pursuant to paragraph (5) of subdivision (a) of Section 366.2.
(J) The commission may modify or adjust the requirements of this paragraph for any community choice aggregator with less than 100,000 customer accounts as individual circumstances merit.
(K) The commission has ongoing review authority over any contracts of community choice aggregators submitted pursuant to this section consistent with its review of the contracts of electrical corporations entered into pursuant to this section.
(6) The commission shall continue the Bioenergy Market Adjusting Tariff (BioMAT) program established pursuant to this subdivision until the implementation of paragraph (5) is resolved in commission proceeding R.22-10-010, and adequate time is given to community choice aggregators to participate in the program.
(7) For the purposes of this subdivision, “bioenergy” means biogas and biomass.
(g) The electrical corporation may make the terms of the tariff available to owners and operators of an electric generation facility in the form of a standard contract subject to commission approval.
(h) Every kilowatthour of electricity purchased from an electric generation facility shall count toward meeting the electrical corporation’s renewables portfolio standard annual procurement targets for purposes of paragraph (1) of subdivision (b) of Section 399.15.
(i) The physical generating capacity of an electric generation facility shall count toward the electrical corporation’s resource adequacy requirement for purposes of Section 380.
(j) (1) The commission shall establish performance standards for any electric generation facility that has a capacity greater than one megawatt to ensure that those facilities are constructed, operated, and maintained to generate the expected annual net production of electricity and do not impact system reliability.
(2) The commission may reduce the three megawatt capacity limitation of paragraph (1) of subdivision (b) if the commission finds that a reduced capacity limitation is necessary to maintain system reliability within the applicable electrical corporation’s service territory.
(k) (1) Any owner or operator of an electric generation facility that received ratepayer-funded incentives in accordance with Section 379.6 of this code, or with Section 25782 of the Public Resources Code, and participated in a net metering program pursuant to Sections 2827, 2827.9, and 2827.10 of this code before January 1, 2010, shall be eligible for a tariff or standard contract filed by an electrical corporation pursuant to this section.
(2) In establishing the tariffs or standard contracts pursuant to this section, the commission shall consider ratepayer-funded incentive payments previously received by the generation facility pursuant to Section 379.6 of this code or Section 25782 of the Public Resources Code. The commission shall require reimbursement of any funds received from these incentive programs to an electric generation facility, in order for that facility to be eligible for a tariff or standard contract filed by an electrical corporation pursuant to this section, unless the commission determines ratepayers have received sufficient value from the incentives provided to the facility based on how long the project has been in operation and the amount of renewable electricity previously generated by the facility.
(3) A customer that receives service under a tariff or contract approved by the commission pursuant to this section is not eligible to participate in any net metering program.
(l) An owner or operator of an electric generation facility electing to receive service under a tariff or contract approved by the commission shall continue to receive service under the tariff or contract until either of the following occurs:
(1) The owner or operator of an electric generation facility no longer meets the eligibility requirements for receiving service pursuant to the tariff or contract.
(2) The period of service established by the commission pursuant to subdivision (d) is completed.
(m) Within 10 days of receipt of a request for a tariff pursuant to this section from an owner or operator of an electric generation facility, the electrical corporation that receives the request shall post a copy of the request on its internet website. The information posted on the internet website shall include the name of the city in which the facility is located, but information that is proprietary and confidential, including, but not limited to, address information beyond the name of the city in which the facility is located, shall be redacted.
(n) An electrical corporation may deny a tariff request pursuant to this section if the electrical corporation makes any of the following findings:
(1) The electric generation facility does not meet the requirements of this section.
(2) The transmission or distribution grid that would serve as the point of interconnection is inadequate.
(3) The electric generation facility does not meet all applicable state and local laws and building standards and utility interconnection requirements.
(4) The aggregate of all electric generating facilities on a distribution circuit would adversely impact utility operation and load restoration efforts of the distribution system.
(o) Upon receiving a notice of denial from an electrical corporation, the owner or operator of the electric generation facility denied a tariff pursuant to this section shall have the right to appeal that decision to the commission.
(p) In order to ensure the safety and reliability of electric generation facilities, the owner of an electric generation facility receiving a tariff pursuant to this section shall provide an inspection and maintenance report to the electrical corporation at least once every other year. The inspection and maintenance report shall be prepared at the owner’s or operator’s expense by a California-licensed contractor who is not the owner or operator of the electric generation facility. A California-licensed electrician shall perform the inspection of the electrical portion of the generation facility.
(q) The contract between the electric generation facility receiving the tariff and the electrical corporation shall contain provisions that ensure that construction of the electric generating facility complies with all applicable state and local laws and building standards, and utility interconnection requirements.
(r) (1) All construction and installation of facilities of the electrical corporation, including at the point of the output meter or at the transmission or distribution grid, shall be performed only by that electrical corporation.
(2) All interconnection facilities installed on the electrical corporation’s side of the transfer point for electricity between the electrical corporation and the electrical conductors of the electric generation facility shall be owned, operated, and maintained only by the electrical corporation. The ownership, installation, operation, reading, and testing of revenue metering equipment for electric generating facilities shall only be performed by the electrical corporation.

SEC. 7.SEC. 6.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.